Construction in India – Key Trends & Opportunities to 2022

Date: March 26, 2018
Pages: 49
Price:
US$ 1,950.00
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Publisher: Timetric
Report type: Strategic Report
Delivery: E-mail Delivery (PDF)
ID: C04F064F8C8EN
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Construction in India – Key Trends & Opportunities to 2022
SYNOPSIS

The pace of expansion in India’s construction industry slowed sharply in 2017, as investment growth was undermined by uncertainty stemming from a demonetization policy. The industry’s growth will pick up pace in 2018, however, in part supported by government plans to boost infrastructure spending.

In real terms, the Indian construction industry’s output grew by an average annual growth of 3.3% during the review period (2013–2017). Industry growth over the forecast period (2018–2022), which is expected to average 4.74% a year, will be supported by public and private sector investment to improve the country’s transport, energy and education infrastructure, as well as spending on affordable homes to meet the rising demand for housing. Urbanization will continue to generate demand for residential and infrastructure development.

Government investment in transport infrastructure, energy and residential projects under flagship programs such as the 100 Smart Cities Mission, Bharatmala scheme, Housing for All 2022, UDAN (Ude Desh ka Aam Nagrik) scheme and the Aayushman Bharat program is expected to drive the growth of the industry over the forecast period.

There are, however, risks associated with this positive outlook. The country’s cumbersome bureaucracy and poor regulatory and legal framework continues to hold back investment growth and create a challenging business environment for investors.

SUMMARY

Timetric’s Construction in India – Key Trends and Opportunities to 2022 report provides detailed market analysis, information and insights into the Indian construction industry, including:
  • The Indian construction industry's growth prospects by market, project type and construction activity
  • Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Indian construction industry
  • Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
SCOPE

This report provides a comprehensive analysis of the construction industry in India. It provides:
  • Historical (2013-2017) and forecast (2018-2022) valuations of the construction industry in India, featuring details of key growth drivers.
  • Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
  • Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
  • Listings of major projects, in addition to details of leading contractors and consultants
REASONS TO BUY
  • Identify and evaluate market opportunities using Timetric's standardized valuation and forecasting methodologies.
  • Assess market growth potential at a micro-level with over 600 time-series data forecasts.
  • Understand the latest industry and market trends.
  • Formulate and validate strategy using Timetric's critical and actionable insight.
  • Assess business risks, including cost, regulatory and competitive pressures.
  • Evaluate competitive risk and success factors.
KEY HIGHLIGHTS
  • Timetric expects the residential construction market to retain its leading position over the forecast period, with a share of 28.7% of the industry’s total value in 2022. In a bid to provide affordable housing to meet demand from lower- and middle-income groups, the government sets a target of constructing 20 million social housing units in urban areas and 30 million housing units in rural areas by 2020 under the Pradhan Mantri Awas Yojana.
  • Owing to industrialization, urbanization and population growth, electricity demand is escalating. According to the Central Electricity Authority (CEA), the country’s electricity demand is expected to grow at a CAGR of 7.1% between FY2017 and FY2022. Accordingly, the government is investing to increase the electricity generation capacity in order to meet rising demand.
  • Timetric expects the infrastructure construction market output to record a forecast-period CAGR of 9.19% in nominal terms, driven by the government’s efforts to develop the country’s transport infrastructure. In October 2017, the government approved the country’s biggest highway construction plan, in order to support economic activity and create employment opportunities. With a total investment of INR6.9 trillion (US$106.3 billion), the government plans to develop total 83,677km of roads by 2022.
  • The government is focusing on the country’s education and healthcare system, which in turn will support the growth of the institutional construction market over the forecast period. In the Union Budget for 2018–2019, the government increased its expenditure on the education, healthcare and social protection sector by 13.1%, going from INR1.2 trillion (US$18.7 billion) in FY2017–2018 to INR1.4 trillion (US$20.6 billion) in FY2018–2019.
  • The total construction project pipeline in India, as tracked by the Construction Intelligence Center (CIC), including all mega projects with a value above US$25 million, stands at INR74.0 trillion (US$1.1 trillion). The pipeline, which includes all projects from pre-planning to execution, is skewed to early stage projects, with 55.5% of the pipeline value being in projects in the pre-planning and planning stages as of March 2018.
1 EXECUTIVE SUMMARY

2 CONSTRUCTION OUTLOOK: AT-A-GLANCE

3 LATEST NEWS AND INDICATORS

4 KEY DRIVERS AND RISKS

4.1 Economic Performance
4.2 Political Environment
4.3 Demographics
4.4 Risk Profile

5 CONSTRUCTION OUTLOOK

5.1 All Construction
  5.1.1 Outlook
  5.1.2 Project analytics
5.2 Commercial Construction
  5.2.1 Outlook
  5.2.2 Project analytics
5.3 Industrial Construction
  5.3.1 Outlook
  5.3.2 Project analytics
5.4 Infrastructure Construction
  5.4.1 Outlook
  5.4.2 Project analytics
5.5 Energy and Utilities Construction
  5.5.1 Outlook
  5.5.2 Project analytics
5.6 Institutional Construction
  5.6.1 Outlook
  5.6.2 Project analytics
5.7 Residential Construction
  5.7.1 Outlook
  5.7.2 Project analytics

6 KEY INDUSTRY PARTICIPANTS

6.1 Contractors
6.2 Consultants

7 APPENDIX

7.1 What is this Report About?
7.2 Definitions
7.3 About Timetric
7.4 About CIC
7.5 Disclaimer

LIST OF TABLES

Table 1: India, Key Economic Indicators
Table 2: India, Construction Output Value (nominal, INR Billion)
Table 3: India, Construction Output Value (nominal, US$ Billion)
Table 4: India, Top Commercial Construction Projects by Value
Table 5: India, Top Industrial Construction Projects by Value
Table 6: India, Top Infrastructure Construction Projects by Value
Table 7: India, Top Energy and Utilities Construction Projects by Value
Table 8: India, Top Institutional Construction Projects by Value
Table 9: India, Top Residential and Mixed-Use Construction Projects by Value
Table 10: India, Key Contractors
Table 11: India, Key Consultants
Table 12: Timetric Construction Market Definitions
Table 13: Construction Risk Index Ratings and Scores

LIST OF FIGURES

Figure 1: Key Markets, Construction Output Growth Matrix and Risk Matrix
Figure 2: India, Construction Projects Pipeline by Sector (INR Billion)
Figure 3: India, Housing Prices Index
Figure 4: India, Risk Comparison, Q4 2017
Figure 5: India, Risk Comparison Review
Figure 6: India, Construction Output Value (Real, US$ billion, 2017 prices and exchange rate)
Figure 7: India, Construction Output Value, Growth Matrix
Figure 8: India, Construction Output Value, by Sector (INR Billion), 2013–2022
Figure 9: India, Construction Projects Pipeline, Projected Annual Spending by Stage (INR Billion), 2017–2022
Figure 10: India, Construction Projects Pipeline, Value by Stage (INR Billion)
Figure 11: India, Commercial Construction Output by Project Type (INR Billion), 2013–2022
Figure 12: India, Commercial Construction Projects Pipeline, Value by Stage (INR Billion)
Figure 13: India, Commercial Construction Projects Pipeline, Projected Annual Spending by Stage (INR Billion)
Figure 14: India, Industrial Construction Output by Project Type (INR Billion), 2013–2022
Figure 15: India, Industrial Construction Projects Pipeline, Value by Stage (INR Billion)
Figure 16: India, Industrial Construction Projects Pipeline, Projected Annual Spending by Stage (INR Billion)
Figure 17: India, Infrastructure Construction Output by Project Type (INR Billion), 2013–2022
Figure 18: India, Infrastructure Construction Projects Pipeline, Value by Stage (INR Billion)
Figure 19: India, Infrastructure Construction Projects Pipeline, Projected Annual Spending by Stage (INR Billion)
Figure 20: India, Energy and Utilities Construction Output by Project Type (INR Billion), 2013–2022
Figure 21: India, Energy and Utilities Construction Projects Pipeline, Value by Stage (INR Billion)
Figure 22: India, Energy and Utilities Construction Projects Pipeline, Projected Annual Spending by Stage (INR Billion)
Figure 23: India, Institutional Construction Output by Project Type (INR Billion), 2013–2022
Figure 24: India, Institutional Construction Projects Pipeline, Value by Stage (INR Billion)
Figure 25: India, Institutional Construction Projects Pipeline, Projected Annual Spending by Stage (INR Billion)
Figure 26: India, Residential Construction Output by Project Type (INR Billion), 2013–2022
Figure 27: India, Residential Construction Projects Pipeline, Value by Stage (INR Billion)
Figure 28: India, Residential Construction Projects Pipeline, Projected Annual Spending by Stage (INR Billion)
Figure 29: India, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 30: India, Headquarters of Foreign Contractors (% of Project Pipeline with Foreign Contractor)
Figure 31: India, Headquarters of Key Consultants (% of Total Project Pipeline)
Figure 32: India, Headquarters of Foreign Consultants (% of Project Pipeline with Foreign Consultants)
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